Bye bye synthetic food dyes: How CPG companies can manage the phaseout

From candy aisles to cereal shelves, the bright reds, blues, and yellows in processed foods are undergoing a transformation. This episode, based on the recent Future of Commerce article, investigates the impending phaseout of synthetic food dyes like Red 40 and the operational tsunami it’s creating for CPG manufacturers.

As the FDA pulls key artificial dyes from the market and consumers demand cleaner labels, major brands like Kraft Heinz, PepsiCo, and General Mills are adapting with speed. But swapping synthetics for natural alternatives isn’t just a simple ingredient change—it impacts everything from global agriculture to ERP systems.

What You’ll Learn in This Episode:

What’s Fueling the Phaseout of Synthetic Dyes

• Health concerns linked to ingredients like Red 40 and Yellow 5
• Regulatory crackdowns and voluntary industry commitments

Why Natural Alternatives Are Logistically Complex

• Stability challenges from light, heat, pH, and shelf life
• Cost increases—up to 10x more expensive than synthetics
• Supply constraints for ingredients like beet powder and spirulina

The Ripple Effects on CPG Operations

• Factory retooling to accommodate new viscosities and shelf-life constraints
• The impact on inventory, packaging, cold chains, and product formulation

How Technology Is Powering the Transition

• Supplier management systems for new ingredient sourcing
• Recipe and product lifecycle management tools
• Real-time workspaces connected to ERP for accelerated R&D-to-market turnaround
• Traceability systems for consumer transparency and regulatory compliance

Key Takeaways:

• The synthetic dye phaseout is being driven by both consumer demand and regulatory policy
• Natural colorants are chemically different—and operationally harder to manage
• Cost, supply, stability, and compliance are all major hurdles
• Integrated digital systems give CPG companies the agility to adapt quickly
• The transition is as much a story about tech infrastructure as it is about food reformulation

Subscribe to our podcast for expert insights on food industry innovation, CPG transformation, and regulatory disruption. Visit The Future of Commerce for data-driven coverage of how companies are responding to consumer and policy shifts. Share this episode with supply chain leaders, food technologists, and anyone invested in building a cleaner, smarter food system.